Poonawalla Fincorp’s Q2 earnings after tax jumped 5.1 times to ₹375 cr, revenue rose 55% to ₹74,008 cr, and the stock closed 2% higher at ₹446.5.
The 10 analysts covering the stock give a majority buy, with UBS pegging a ₹600 target (34.4% upside), Motilal Oswal ₹570 (27.7% upside) and JM Financial ₹550.
Net interest income surged 80.6% to ₹1,380 cr, and the net interest margin expanded by 31 basis points; gross non‑performing assets fell to 1.2% sequentially, while the credit cost dipped to 2.19%.
Management projects a 35‑40% compound annual growth rate over the next few years, aiming for a return on assets of 2.4% and return on equity of 17% by FY28.
Motilal Oswal’s model assumes a 44% AUM CAGR and 120% PAT CAGR through FY26‑28, with the diversified product mix expected to sustain yield gains and moderate credit costs.
The stock, down 7.6% YTD but up 2.7% over the past month, now trades at 2.3× the projected FY28 price‑to‑book; investors are looking ahead to the next earnings on 15 November for further confirmation.